House Republicans are encountering a pivotal moment as they weigh whether to extend a continuing resolution (CR) past the current fiscal year, with some factions advocating for a long-term solution while others caution against it. The situation is further complicated by ongoing discussions on extending Affordable Care Act (ACA) tax credits, which are seen as a potential incentive to secure Democratic support for another CR. Senate leaders like Susan Collins and John Thune are also weighing the implications of a long-term CR on the overall funding process.
Some fiscal hard-liners, who generally do not want to vote for a bill that would raise spending levels, are now advocating for a continuing resolution that would run until March or even to the beginning of the next fiscal year, according to three Republicans granted anonymity to discuss private conversations. At the same time, Senate Appropriations Chair Susan Collins (R-Maine) has expressed adamant opposition to a long-term CR that could undermine the chances of quickly securing fiscal 2026 funding.
Senate Majority Leader John Thune, when asked if he would support a CR running until next Oct. 1, said he is in favor of ‘doing the appropriations process,’ but warned that Democrats ‘may not leave any alternatives’ if talks continue to flounder. Sen. Markwayne Mullin (R-Okla.), who the White House has leaned on to help lead bipartisan negotiations among the rank-and-file, also reported a dim outlook, saying discussions are ‘not really happening’ anymore and the two sides are at an ‘impasse.’
If Republicans do decide to pitch a longer-term CR, they have an idea for trying to entice Democrats to come on board: offer to hold a separate vote on extending Affordable Care Act tax credits. GOP leaders are privately ramping up talks within their senior ranks and with White House officials over what guardrails they could put on the subsidies to make an extension more palatable to conservatives, once the government is reopened. There is recognition that allowing the subsidies to expire could cause major political headaches heading into an election year—and also that Democrats won’t vote to end the shutdown without some sort of ACA victory.
One option under consideration is advancing a year-end health care policy package that pairs items from a GOP wishlist with a two-year extension of scaled-back ACA subsidies, then attaching that package to a bundle of full-year spending bills. Muscling something like that through the House would be tricky for Speaker Mike Johnson, who may not be able to convince enough of his members to accept any form of an Obamacare extension.
For now, though, conservatives like Rep. Chip Roy (R-Texas) seem optimistic—depending on how quickly ACA credits are phased out and whether the GOP gets policy wins like encouraging the use of tax-free Health Savings Accounts. ‘If we have health care reforms on the table that protect and provide greater freedom and independence for patients and doctors, then I’m on board with things that would help build a package,’ Roy said.
What else we’re watching: President Donald Trump invited Senate Republicans for a lunch Tuesday in the Rose Garden Club to celebrate their unity in the government shutdown fight and for passing nominees. Senate Commerce Chair Ted Cruz (R-Texas) expects his committee to easily approve aircraft safety legislation Tuesday morning—the first major legislative response to the deadly passenger jet crash near Ronald Reagan Washington National Airport earlier this year. The bipartisan bill would strengthen oversight of flight routes and require military aircraft to be equipped with transponding technology.